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​​​​​Executive Summary – Many Indians aspire to study overseas in countries like U.S., U.K. And Australia. At the same time universities abroad welcome Indian students as they are generally hardworking and do well. But studying abroad requires a lot of funds. We have some ideas on how to accumulate the funds. These include start saving early, apply for scholarships, get loans and work while you study.

​Many students in India want to study abroad especially in developed countries. Parents also want their children to study in universities in US, UK and Australia. Indian students generally do very well in these universities. It gives them a good head-start and opportunity to do well in the future career. But studying abroad has its challenges. For example, staying away from family is not easy initially. You will be in a new place with different people of different cultures. It will take you time to settle in. A key challenge is finance. Studying abroad is not cheap and you have to plan well to ensure that you have enough funds to pursue your education abroad in a reputed college/university.

1) Decide on location and course – You have to decide which course you want to go for. Fees and other costs vary depending on the type of course and whether it is a Graduation Program or a Post Graduation program. The location is an important factor in the cost. For example the cost of a post graduate course in US will range from US $20000-US $30000 per year in a private college and it will cost about AU $18000- AU $35000 in Australia. (Source HSBC). It would vary as per university and course selected. You have to consider living expenses, commute expenses and salary that you can get (if you are also working). It of course differ from country to country and city to city. For example, if you compare Chicago in Michigan and Austin in Texas on parameters such as housing, transport and food, Chicago is more expensive to live in. Depending on your financial status, education, course required, comfort and willingness and ability to work while you are studying youshould select the country and course.​2) Estimate the cost – You have to estimate the cost much in advance and factor in for inflation, and some amount of currency movement. Here is an estimate on education cost in Australia

​Item

​ Description and Amount

You could live in a shared accommodation outside of campus or incampus or in guesthouses. This can range from AUD 85 to AUD360 per week.(Source : HSBC)

Living Expenses

This will depend on how smartly you save/spend. But an averageof AUD 300 is required per week.(Source : HSBC)

You should consider other costs like application fees, ticket and visa costs, medical expenses, books etc. You might apply to more than 1 university and have to factor that in the cost calculation.

Have you planned your abroad study?

3) Personal funding – You should check how much funding can you bear. Your savings, investments that can be used should be considered. If your parents are willing to bear the expenses, check how much they can afford to pay. Other well-meaning relatives can also pitch in. You could take a personal loan from them and repay when you start earning. You can start saving early on if you have decided to go for education abroad.4) Loans – Most banks in India provide educational loans for studying abroad. The process is relatively hassle free with competitive interest rates especially for reputed foreign universities. Here is a comparison of education loans from SBI and HDFC -

SBI

HDFC

​SBI provides Student Loan Scheme for people of Indian origin for education abroad. The education loan for studying abroad is provided for professional and technical courses offered by reputed universities.

HDFC provides education loan for foreign education to Indian students between the ages of 16-35 years.

The maximum amount of loan s Rs. 30,00,000 and the interest rate ranges from 11.75%-13.50%. Girl students get concession of 0.50% on the interest rate.

​Repayment tenure for loan amount< Rs. 7,50,000 is 10 years and 20 years for loan amount> Rs. 7,50,000

The repayment tenures are -For loans <=Rs. 7,50,000 - up to 10 yearsFor loans >= Rs. 7,50,000 - up to 15 years

There are also other ways to get loans. For example, it would work out well, if you have relatives in U.S. who can take a loan for you there. Needless to say, the loan should be taken prudently depending on repayment capacity.

5) Need based and Merit based Scholarship – Many universities give scholarships to students. Some external agencies also offer scholarships. Check the process and eligibility to obtain one and try to get one. Scholarships give a sense of relief as tuition fees can be reduced quite substantially. But there will be hordes of students from all over the world applying for scholarship and so there is no guarantee that you will get one.

6) Working while Studying – If you are willing to work while studying, it will ease your financial burden. You could take part-time jobs or jobs during holidays. But you might not get a desk job with a fancy laptop. It might be waiting tables or babysitting. It will add to your experience and provide you with funds. Some universities and courses offer internships or research work or work in the laboratory or library. These might be in sync with your course and be doubly advantageous as you get experience in your field and you can earn money. There will be competition for these kind of jobs from other students.

Going to study abroad requires careful planning. Parents and students have to plan well ahead of time. Systematic investment in different assets will ensure a good sum is accumulated. They have to consider many factors regarding education abroad and use a mix of funding options listed above to be successful.